Lonza Warns on 2024 Profitability Hit From Lost Moderna Revenue
By Adria Calatayud
Lonza Group warned that its profitability will take a hit next year from losing revenue from an agreement with Moderna and the risk of a smaller business with Kodiak Sciences.
The Swiss life-sciences company said Tuesday that it expects a profit margin "in the high twenties" percentage range for 2024. The company expects its core earnings before interest, taxes, depreciation and amortization margin for 2023 will be above the 28% to 29% range it had previously indicated.
Lonza said its business growth in 2024 will be also be offset by a higher comparative base from this year due to a Moderna termination agreement.
The company anticipates 2023 sales growth at constant currency will be at the higher end of its previous outlook, which called for growth in the mid-to-high single-digit percentage range.
In the third quarter, Lonza said its financial performance reflected sustained commercial demand for contract drug manufacturing, but that biotechnology funding constraints hurt growth in early-stage services in its biologics segment and led to slower sales growth in its cell-and-gene operations. The company's capsules and health-ingredients segment was hit by weakness in the U.S. nutrition-pharmaceutical market.
Looking further ahead, Lonza expects sales growth of 11% to 13%, and a core Ebitda margin of 32% to 34% over the 2024-28 period, it said.
Write to Adria Calatayud at adria.calatayud@dowjones.com
(END) Dow Jones Newswires
October 17, 2023 01:44 ET (05:44 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
After Earnings, Is Alphabet Stock a Buy, a Sell, or Fairly Valued?
-
When Will the Fed Start Cutting Interest Rates?
-
What’s the Difference Between the CPI and PCE Indexes?
-
Powell Unfazed By Sticky Inflation, but Rate Cuts Are Far Off
-
After Earnings, Is Microsoft Stock a Buy, a Sell, or Fairly Valued?
-
Best- and Worst-Performing Stocks of April 2024
-
Magnificent 7 Stocks Earnings Updates: AI Remains the Focus
-
Small-Cap and Value Stocks Are Undervalued
-
Apple Earnings: iPhone Growth Forecasts Drive Change in Fair Value
-
4 Utility Stocks to Play the AI Data Center Boom
-
Albemarle Earnings: We Expect Improved Results In the Rest of Year Following Cyclically Low Profits
-
Novo Nordisk Earnings: Raised Fair Value Estimate Still a Contrast to Market Overenthusiasm
-
After Earnings, Is Verizon Stock a Buy, a Sell, or Fairly Valued?
-
Look Inside Berkshire Hathaway’s Portfolio Before Its Annual Meeting
-
How to Invest Like Warren Buffett
-
Cognizant Earnings: Improved Profitability Buttresses Results as Customer Spending Remains Muted